Pakistan, Sept. 24 -- Pakistan's economic growth is expected to remain at 3.7% in the ongoing fiscal year 2027 (FY27) as the lingering effects of the Middle East conflict weigh on activity, while inflation is projected to rise to 8.3%, the Asian Development Bank (ADB) said.

The ADB, in its latest Asian Development Outlook for September, said higher energy and logistics costs and pressure on the exchange rate would complicate Pakistan's economic recovery.

"Growth is projected to remain at 3.7% in FY2027 as lingering effects from the Middle East conflict dampen macroeconomic momentum," said ADB.

The outlook noted that sustained performance under the International Monetary Fund's (IMF) Extended Fund Facility (EFF) program, re-entry into i...